Ultimate guide for electric bike insurance

Environmental degradation and the consequent climate change are one of the gravest global issues. Consequently, every sector is trying to go for carbon-neutral options. The two-wheeler automobile sector is no different. This is where electric bikes come into play and it is the future of the two-wheeler automobile industry. Now, in general, you have to get insurance for your bike, and the same applies to electric bikes as well. With the digital presence of insurance companies, you can compare bike insurance plans online and can buy electric bike insurance within a few clicks. 

What is electric bike insurance?

Electric bikes or e-bikes are two-wheelers that run on electricity. Electric bike insurance is insurance for your bike, which will keep you protected against the financial and legal expenses that you may have to bear in case of a mishap or an accident.

The sources of power for electric bikes and internal combustion engine bikes are different. One derives its power from electricity and the other runs on fossil fuels like petrol and diesel. However, the process of getting insurance for bikes, whether an electric or one with a combustion engine, is the same. The legal mandate of having at least a third-party two-wheeler insurance, as outlined by the Motors Vehicle Act 1988, applies to electric bikes as well. 

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Why do you need to insure your electric bike?

Listed below are the reasons why insurance for bikes is absolutely necessary, even if it is an electric bike – 

  • Legal compliance: As mentioned before, under the Motors Vehicle Act, every motor vehicle has to have at least a third-party motor insurance to run their vehicle on the roads. This applies to electric bikes as well. Riding an electric bike without valid insurance can attract penalties and in case of repetitive offence your registration and driving license can be suspended. In extreme cases, you may face even imprisonment.
  • Financial coverage: While there is a widening popularity among the masses for electric bikes, it is yet to reach a break-even point. One of the prime reasons behind this relatively slower growth is the cost of electric bikes. They are expensive, which is why any repair or replacement cost will be high as well. With electric bike insurance, you will stay protected against such financial burdens.
  • Scope for additional coverage: Once you buy insurance for your bike, you can then easily buy add-ons or riders depending on your need and preferences. For example, since e-bikes are yet to become a norm, you may want to buy Roadside assistance coverage along with insurance for your bike. You can easily compare bike insurance and the available add-ons, online.
  • Peace of mind: Buying an electric bike is quite an investment. If it incurs damage which requires repairs or replacement, and you have to bear the expense from your own pocket, it will be a major stress for you. By getting insurance for the bike, you can be at peace that all potential risks are covered.
  • Conveniently available: Buying electric bike insurance is extremely easy. You can go online and compare bike insurance plans available for electric bikes. Based on the coverage, premium and your needs and usage, choose the electric bike insurance that suits you the best. 

What is covered under insurance for an electric bike?

Given below are the expenses that will be covered under comprehensive electric bike insurance –

  • Accidents – In case your electric bike incurs damages due to an accident or collision, the cost of repairs or replacement will be covered under the bike insurance.
  • Theft of the electric bike – If your bike is stolen, then you will be compensated for the same. Usually, in case of total loss or damage, the compensation value is based on the IDV of the bike.
  • Loss due to fire – If an insured electric bike gets damaged in a fire, then the same is covered under the electric bike insurance.
  • Loss due to natural calamities – Buying insurance for your bike will keep you covered against the potential risks arising from natural calamities like floods, earthquakes, storms, etc.
  • Loss due to man-made activities – Your electric bike may get partially or totally damaged due to man-made disasters like a riot, terrorism, vandalism, etc. Such losses are also covered.
  • Third-party liability coverage – In case of an accident, if there is any loss of property or a bodily injury to a third party, then the consequent financial and legal expenses will be covered.
  • Personal medical cover – Comprehensive insurance for bikes also provides medical coverage for your treatment if you get injured in an accident. 

What is not covered by insurance for an electric bike?

It is extremely important to know which expenses are not covered under your electric bike insurance. Some of the common exclusions are –

  • Own damage with a third-party plan – If you have only third-party insurance for the bike, you won’t be covered for any damage to your electric bike.
  • Intoxicated driving – Any accident or mishap caused by drunk driving won’t be covered under the insurance policy.
  • Driving without documents – If you make a claim against your electric bike insurance for a situation where you had been driving without a driving license, it won’t be accepted.
  • Damage due to negligence – Any loss arising out of your negligence or any intentional damage will not be covered by your bike insurance.
  • Consequential damage – In case there is damage which is not the direct result of an accident, such losses won’t be covered. 

It is important to realise that electric bikes also come under the purview of the Motors Vehicle Act. So you must get insurance for your bike, to be able to ride your electric bike on the road. In addition to a third party, you should also buy either a standalone own damage cover or comprehensive electric bike insurance to stay financially protected against damages and repairs. To buy one, go online, compare bike insurance for electric bikes and zero on the one that best suits your needs and budget.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.